Matching Concerns

Some states have “matching” regulations requiring the replacement of undamaged items when the damaged items cannot be replaced in a way that achieves a uniform appearance. Two states which have such regulations are Connecticut and Rhode Island. In 1990, the National Association of Insurance Commissioners adopted a new section of the “Unfair Property/Casualty Claims Settlement Practices Model Regulation.” Section 9 of the model regulation provides,

A. When the policy provides for the adjustment and settlement of first-party losses based on replacement cost, the following shall apply:
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(2) When a loss requires replacement of items and the replaced items do not match in quality, color or size, the insurer shall replace all such items in the area so as to conform to a reasonably uniform appearance. This applies to interior and exterior losses. The insured shall not bear any cost over the applicable deductible, if any.

 

Connecticut has a statute which provides specific guidance for this state,

“when a covered loss for real property requires the replacement of an item or items and the replacement item or items do not match adjacent items in quality, color or size, the insurer shall replace all such items with material of like kind and quality so as to conform to a reasonably uniform appearance.” Conn. Gen. Stat. § 38a-316e (2014)

 

Rhode Island has a similar law, it is actually a bit more extensive. The full document can be viewed here in .pdf format. See Insurance Regulation 73

“When a loss requires replacement of items and the replaced items do not match in quality, color or size, the insurer shall replace all such items so as to conform to a reasonably uniform appearance. This applies to interior and exterior losses. The first party claimant shall not bear any cost over the applicable deductible, if any.” Section 9, A (2) within R.I. Gen. Laws §§ 27-9.1-1 et seq

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